A stagnant economy and a fragile banking sector could be fixed with the European Central Bank (ECB) buying up toxic assets seen in peripheral nations like Italy, according to Philippe Bodereau, the global head of financial research at Pimco.
“I think there is a very easy solution to this problem,” he told CNBC Tuesday.
“The ECB is obviously looking for assets to buy. They will be running out of assets to buy as part of their QE (quantitative easing) program at some point early next year. The most impactful thing they could do, in my mind in Europe today, would be to buy NPLs (non-performing loans).”